Question

Near an ocean beach, a high-rise building is being constructed that will block the scenic view of the ocean by the residents of a low-rise building. The Coase theorem suggests that this type of dispute between the owners of high-rise and low-rise buildings: Group of answer choices Can only be resolved by a zoning ordinance restricting high-rise buildings Should be resolved by a government fine for the builder of the high-rise Can be resolved by the owners themselves through individual bargaining Has to be resolved by city government officials

Answer 1

The correct answer is can be resolved by the owners themselves through private bargaining.

• According to the Coase Theorem, where there is a conflict between property rights, the parties involved can bargain or negotiate terms that
• fully reflect the actual costs and underlying values of the relevant property rights, leading to the most efficient conclusion.
• When negotiating is costly, Coase's theorem fails. A fair resolution cannot be reached if negotiation is not possible.

What are the conditions of Coase Theorem?

• The two requirements for an effective market solution are full property rights and no (or minimal) transaction costs, according to the Coase theorem.

• By transferring property rights, one can occasionally approximate these conditions and establish a market for the externality.

Learn more about Coase Theorem brainly.com/question/14837886

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